Università Cattolica del Sacro Cuore

CLE Seminar Series. Marco Galbiati

 4 March 2016

Friday 4 March, 12:00-13.00. Marco Galbiati, Bank of England. Title: An introduction to interbank payment systems with an application of network theory. Venue: Largo Gemelli 1, Milano. Room G151.

Abstract: Communities and driver nodes in the TARGET2 payment system’: With a daily turnover exceeding €2.3 trillion, TARGET2 (T2) is one of the largest interbank payment system in the world, settling the vast majority of interbank payments in euros. Moreover, T2 is the only system of its kind operating on a transnational scale, settling money transfers across twenty-three countries. This paper first describes T2 by means of classic network measures. Then, it applies novel methods developed in network theory to uncover two additional features of T2: driver nodes and communities. The former concept identifies systemically important banks; the latter singles out regions of intense liquidity circulation and thus uncovers the real, hidden geography of euro transfers